One of the biggest challenges of accessing grants from foundations is identifying the priorities of that particular foundation and evaluating your shared values and objectives. Sam Aylesworth, executive director of the Calgary Foundation, recently discussed the changing role of charitable foundations in the support and nurture of community values and visions. Different types of foundations have different missions, he pointed out, and the mission is often influenced by the basic organization of the foundation itself.

Private foundations are established by families or individuals to express their own values and priorities and influence the values and priorities of others. They are a means whereby a family can also support the visions and values of others and express their civic duty. The perpetual nature of a private foundation also helps to maintain a family history and build strong links between the generations as they participate in the life of a community or a nation.

Corporate foundations, like private foundations, are a mechanism whereby a company can express its values and priorities and influence the values and priorities of others. While they are rooted in good corporate citizenship, these foundations are often quite focused and have a commitment to generate value for the company too. A major strength of corporate foundations is the leverage that they can exert through their employees and key stakeholders. This activity is most clearly seen in the promotion of employee volunteer programs that can add significant value to a straight donation of money or product.

Agency-specific foundations and cause-specific foundations are created solely to raise funds for a specific charitable organization such as a university or a social service agency, or to raise funds for a specific cause or field of interest like cancer research or wildlife preservation. These foundations must be able to differentiate themselves from other foundations as prudent managers of capital, and responsible allocators of charitable dollars.

Community foundations are a repository for capital contributions by a large number of citizens. They encompass fully discretionary gifts, field of interest funding, designated funds and donor advised funds. The capital is pooled and invested for the very long term and income is usually distributed annually to support a broad range of needs.

Foundations are evaluating themselves more than ever

All foundations are struggling to redefine their focus, improve their reviews of granting possibilities, and find new ways to evaluate the effectiveness of their grants. Some foundations continue to fund only capital projects, but are investigating alternative approaches to granting. Others are emphasizing technical support to charitable organizations to help increase efficiencies and develop agency competence. Some emphasize research and finding solutions to problems rather than funding agencies. Still others emphasize experimental projects which focus on emerging needs. The different priorities of each foundation type tend to dictate the type of grants that they offer.

According to Aylesworth, there are growing efforts by foundations to be more proactive and to emphasize the needs for collaboration between charities. Organizations such as Calgary’s Centre for Non-profit Management help to address the need for competent consulting services for cash-strapped non-profits. There is also growing support among funding bodies for combined accounting services for a number of social service agencies or cultural groups. Some foundations are even funding studies relating to the possible merger of organizations which have similar mandates.

Not just promoting collaboration among agencies, foundations are also forging partnerships among themselves. Private foundations are sometimes called upon to offer flow-through funding to community foundations as they become established. Governments at all levels are beginning to work with foundations to review and set priorities for community agency funding . The shared Assessment of Major Capital Campaigns project in Calgary highlighted the different capital campaigns that are currently underway in that city. Aylesworth notes that similar lists are needed in other cities as well.

Opportunities and challenges are always numerous

“People need to look beyond personal tax planning and corporate marketing plans, to the values, visions and needs which lie at the heart of a community,” says Aylesworth. These values have created the culture of the community, including its social and health services, educational and cultural programs, and approach to ecological systems and the environment. Despite government cutbacks, he says, communities must work to maintain and develop their culture. Foundations of all types play an integral role in this development.

Based on a presentation by Sam Aylesworth of the Calgary Foundation. For more information, please call (403) 264-1662.